AX Real EstateMAL:AXR 29 Operating Margin % is 97.49% as of Oct. 2025, which is 3% above its 10-year median of 94.30. GuruFocus rates MAL:AXR with a GF Score™ of 29/100 and a GF Value™ of €0.81 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 1,745 Real Estate companies, AX Real Estate ranks better than 99.08% on this metric.
AX Real Estate (MAL:AXR) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
AX Real Estate Operating Margin % Related Terms
AX Real Estate Operating Margin % Historical Data
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The historical data trend for AX Real Estate's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AX Real Estate Operating Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, AX Real Estate's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AX Real Estate Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, AX Real Estate's Operating Margin % distribution charts can be found below:
* The bar in red indicates where AX Real Estate's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
AX Real Estate's Operating Margin % for the fiscal year that ended in Oct. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AX Real Estate (MAL:AXR) has a Operating Margin % of 97.49% as of Oct. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on AX Real Estate and its competitors. This is near median its historical median of 94.30. Over the past decade, AX Real Estate's Operating Margin % has ranged from 86.06 to 96.12. According to the industry distribution chart, AX Real Estate ranks #16 out of 1745 companies in the Real Estate industry, placing it in the top 0.90000000000001%.
Is AX Real Estate's Operating Margin % too high?
AX Real Estate's current Operating Margin % of 97.49% is near median its 10-year median of 94.30. Over the past 10 years, this metric has ranged from a low of 86.06 to a high of 96.12. The Real Estate industry median Operating Margin % is 13.21. AX Real Estate's value of 97.49% is 638% above this industry median. Based on the distribution chart, AX Real Estate ranks #16 out of 1745 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, AX Real Estate has a GF Score™ of 29/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AX Real Estate's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, AX Real Estate ranks #16 out of 1745 companies for Operating Margin %. This places AX Real Estate in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.21. AX Real Estate's value of 97.49% is 638% above this benchmark. Historically, AX Real Estate's own Operating Margin % has ranged from 86.06 to 96.12 over the past decade. While the company's 10-year median is 94.30 vs. the industry median of 13.21, AX Real Estate has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AX Real Estate's current Operating Margin % of 97.49% is 638% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on AX Real Estate and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AX Real Estate's current Operating Margin % is 97.49%, which is near median its own 10-year median of 94.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AX Real Estate stock overvalued right now?
Based on GuruFocus' analysis, AX Real Estate (MAL:AXR) is currently considered Possible Value Trap. The stock's GF Value™ is €0.81, compared to a current price of €0.49 — trading 39.5% below its estimated fair value. The current Operating Margin % is 97.49%, which is near median its 10-year median of 94.30 and 638% above the Real Estate industry median of 13.21. AX Real Estate's overall GF Score™ is 29/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For AX Real Estate (MAL:AXR), the current Operating Margin % is 97.49% as of Oct. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AX Real Estate (MAL:AXR) Overvalued in 2026?
Based on GuruFocus' analysis, AX Real Estate stock appears to be undervalued.
The current stock price of €0.49 is trading 39.5% below its estimated GF Value™ of €0.81.
GuruFocus considers AX Real Estate to be Possible Value Trap.
Key valuation signals for MAL:AXR:
Operating Margin %: 97.49% (near median its 10-year median of 94.30)
GF Value™: €0.81 vs. price of €0.49 (39.5% below fair value)
Industry Position: 638% above the Real Estate median (#16 of 1745)
No single metric tells the full story. See the MAL:AXR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AX Real Estate PLC serves as the holding company of the Estates Group within the AX Group, with the former boasting a diverse portfolio of properties. It is engaged in four main business sectors namely, Care, Construction, Hospitality, Real Estate, and Development, and is also involved in renewable energy. It generates rental revenues from Hospitality, Care home, Offices, Residential, and Warehousing. It generates the majority of its revenue from the Hospitality segment.
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